- Shares in French advertising group Publicis rose today on the news that talks which could result in a merger or acquisition of Young & Rubicam are going ahead.
Y&R's talks with the WPP Group collapsed on Friday. The breakdown saw Y&R shares fall sharply yesterday in New York as investors voted with their feet over concerns of a possible deal with Publicis.
Publicis shares were up 5.24 per cementing gains of 18 per cent made last week as the first rumours emerged that Publicis was close to mounting an offer for the US company.
WPP refused to comment on why the talks had foundered. However, people familiar with the deal said talks had collapsed over a number of issues, including the proposed integration of Y&R's operations.
The drop reversed rises in Y&R's share price which have come on hopes of a concrete agreement with WPP. Y&R is the seventh largest ad group in the world. WPP is the second largest and an acquisition of Y&R would have made it the largest.
However, some industry analysts believe that a deal with WPP and Y&R might still go ahead if Publicis fail to come up with enough cash. Y&R shareholdings are likely to reject an all-share deal from the French company.